Document1 Q Search in Document Home Insert Draw Design Layout References Mailings Review View o+ Share Calibri (Body) 12 A- A Aa A AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcDdEE AaBb( AaBbCCDdEE AaBbCcDdEe Paste B I U abe X2 X2 A . A . E Normal No Spacing Heading 1 Heading 2 Title Subtitle Subtle Emph Styles Pane Q Events has taken off financially after your initial report to Wilson Lux! He has decided to give you another finance question which he has been ponderi 3. Use EXCEL Solver to obtain a solution to the linear programming model from part (a), s been pondering over while on his yacht. The question is in regard together with an Answer Report and a Sensitivity Report. Provide a screenshot of your Format Text Effects to planning and the number of the different category types of events erent category types of events he should focus on. His goal for the company is to slowly dominate the wine and food event space and he has a personal preference for solved EXCEL spreadsheet and the Answer and Sensitivity reports below. these types of events. The other event categories which appear predominantly are sporting events and businesses that want to run conferences. To promote his and the company's interests, he needs to know the optimal number of events to run in Do not discuss the output, save this for the report body! A A each category to minimise monthly costs. There are three focus categories: Wine & Food, Sporting and Conference events. On average, each Wine & Food event costs $5000 to run, each Sporting event costs $15,000 to run and each Confe Conference event costs $20,000 to run. (c) (6 marks) For the problem solved in part (b), interpret the shadow price for the Income constraint > Shadow To dominate the Wine & Food event space, Wilson insists the number of Wine & Food events should and for the constraint of Preparation time constraint. For each interpretation state: be greater than 50. In addition, he insists the number of Wine & Food events held is greater than the i. The shadow price, total number of Sporting and Conference events combined. > Reflection ii. The range of feasibility and Each event takes time to prepare and manage before it commences. Wilson allocates a total of 4,200 hours across all events for preparation and management. It is estimated that Sporting events will need ii. The impact of the shadow price on the objective function for changes within this range > Glow 1,500 minutes, Wine & Food will need 2,000 minutes and Conference events will need 2,500 minutes. of feasibility. On the other hand, the size of these events varies in how many attendees there are and how much each > Soft Edges attendee pays for a ticket at each event. On average, a ticket to a Wine & Food event is priced at $80 and 125 people attend, a ticket to a Sporting event is priced at $50 and 400 people attend, is priced at $80 and 100 people attend. Wilson believes to be profitable the total income produced for the Income constraint only: calculate the additional cost needed if the income demanded is > 3-D Format rom all tickets must be at least $1,800,000 to absorb relevant costs. increased by $300,000 each month, that is to $2,100,000 per month. a) (7 marks) Before you begin! Your model for this part will look like the model in the Week Hint #1: Week 4 lecture notes, Slide 45 shows you exactly what you need to do to answer this notes (Slide 13). Formulate a linear programming model for this problem, filling in the template question over the page. Type up the full mathematical model in Word and include it here. For full marks fill in the template provided below, clearly indicating: Hint #2: A negative shadow price is interpreted in the opposite way to a positive shadow . The decision variables. Define them precisely. price . The objective. Using your decision variables, formulate the objective function . The constraints. Using your decision variables, formulate these constraints. Decision Variables (d) (4 marks) Wilson is thinking about his expansion and what the future holds if he spends another Objective and Objective Function (d) (4 marks) Wilson is thinking about his expansion and what the future holds if he spends another $1000 on each Wine & Food event, Calculate the predicted Net Profit Loss for his new business le the objective funct model. Hint: Net Profit is the projected Income minus Minimum Cost, Constraints